Correlation Between Walker Dunlop and Leef Brands
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Leef Brands at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Walker Dunlop and Leef Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Leef Brands, you can compare the effects of market volatilities on Walker Dunlop and Leef Brands and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Walker Dunlop with a short position of Leef Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Leef Brands.
Diversification Opportunities for Walker Dunlop and Leef Brands
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Leef is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Leef Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leef Brands and Walker Dunlop is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Walker Dunlop are associated (or correlated) with Leef Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leef Brands has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Leef Brands go up and down completely randomly.
Pair Corralation between Walker Dunlop and Leef Brands
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 7.65 times less return on investment than Leef Brands. But when comparing it to its historical volatility, Walker Dunlop is 6.79 times less risky than Leef Brands. It trades about 0.07 of its potential returns per unit of risk. Leef Brands is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Leef Brands on August 25, 2024 and sell it today you would earn a total of 5.00 from holding Leef Brands or generate 45.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Leef Brands
Performance |
| Timeline |
| Walker Dunlop |
| Leef Brands |
Walker Dunlop and Leef Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Leef Brands
The main advantage of trading using opposite Walker Dunlop and Leef Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Leef Brands can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Leef Brands will offset losses from the drop in Leef Brands' long position.| Walker Dunlop vs. Mr Cooper Group | Walker Dunlop vs. Velocity Financial Llc | Walker Dunlop vs. Security National Financial | Walker Dunlop vs. Encore Capital Group |
| Leef Brands vs. Hasbro Inc | Leef Brands vs. Emerson Radio | Leef Brands vs. Playtech plc | Leef Brands vs. Cumberland Pharmaceuticals |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |